The Hindu Business Line : West Coast Paper Q1 net up at Rs 9.74 cr

THE West Coast Paper Mills Ltd has recorded 155 per cent increase in net profit at Rs 9.74 crore for the quarter ended June 30, 2005, compared to Rs 3.81 crore for the same period last year.

Gross profit (before depreciation and tax) has climbed to Rs 16.53 crore from Rs 11.05 crore for the corresponding quarter of 2003-04, recording an increase of 50 per cent. Net sales, according to an official release, have increased 19 per cent at Rs 135.45 crore (Rs 113.41 crore). EPS has touched Rs 10.9 as against Rs 4.26 in the previous quarter.

The company has attributed the improved performance to factors such as a 6 per cent increase in production of writing and printing paper, from 25,749 mt to 27,353 mt, higher sales realisation owing to revised sale prices in March and June 2005, and State Government's withdrawal of electricity tax on self-generation from February 27, 2004.

The stabilisation of the Metso Wash plant, according to the company's note, has stepped up the availability of mill pulp and higher chemical recovery. The results would have been even better but for the hike in power cost by Rs 2.28 crore owing to the breakdown of the 14.5 MW turbo-set for 31 days in the quarter under review, it said.

It further said that the level of current assets had been brought down, especially the stock of raw material, coal and finished goods, enabling the company to reduce bank borrowings by Rs 31.87 crore and bring down interest charges.

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